Correlation Between ASURE SOFTWARE and PT Gajah

Can any of the company-specific risk be diversified away by investing in both ASURE SOFTWARE and PT Gajah at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ASURE SOFTWARE and PT Gajah into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ASURE SOFTWARE and PT Gajah Tunggal, you can compare the effects of market volatilities on ASURE SOFTWARE and PT Gajah and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in ASURE SOFTWARE with a short position of PT Gajah. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASURE SOFTWARE and PT Gajah.

Diversification Opportunities for ASURE SOFTWARE and PT Gajah

-0.15

Correlation Coefficient

ASURE SOFTWARE  PT Gajah

Good diversification

The 3 months correlation between ASURE and GH8 is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding ASURE SOFTWARE and PT Gajah Tunggal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Gajah Tunggal and ASURE SOFTWARE is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on ASURE SOFTWARE are associated (or correlated) with PT Gajah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Gajah Tunggal has no effect on the direction of ASURE SOFTWARE i.e., ASURE SOFTWARE and PT Gajah go up and down completely randomly.

Pair Corralation between ASURE SOFTWARE and PT Gajah

Assuming the 90 days trading horizon ASURE SOFTWARE is expected to generate 0.43 times more return on investment than PT Gajah. However, ASURE SOFTWARE is 2.33 times less risky than PT Gajah. It trades about 0.46 of its potential returns per unit of risk. PT Gajah Tunggal is currently generating about 0.12 per unit of risk. If you would invest  870.00  in ASURE SOFTWARE on October 20, 2024 and sell it today you would earn a total of  290.00  from holding ASURE SOFTWARE or generate 33.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ASURE SOFTWARE  vs.  PT Gajah Tunggal

ASURE SOFTWARE

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ASURE SOFTWARE are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, ASURE SOFTWARE exhibited solid returns over the last few months and may actually be approaching a breakup point.

PT Gajah Tunggal

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in PT Gajah Tunggal are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, PT Gajah reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ASURE SOFTWARE and PT Gajah

The main advantage of trading using opposite ASURE SOFTWARE and PT Gajah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASURE SOFTWARE position performs unexpectedly, PT Gajah can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in PT Gajah will offset losses from the drop in PT Gajah's long position.

The idea behind ASURE SOFTWARE and PT Gajah Tunggal pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stocks Directory module to find actively traded stocks across global markets.